GIS & Remote Sensing in auditing. Enhancing audit as a learning tool

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Clarence Dorsey
5 years ago
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1 GIS & Remote Sensing in auditing Enhancing audit as a learning tool 1

2 Presentation covers Netherlands Court of Audit Using GIS & Remote Sensing in auditing, examples: Tsunami Combating money laundering and terrorist financing Future plans Your ideas? 2

3 Netherlands Court of Audit 3

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5 We want to know if public funds have been provided (trust) if public funds have been spent on the purpose they were meant for (regularity) if public entities have complied with laws and regulations (compliance) if public funds have been spent in the most efficient way (efficiency) if public funds have been spent in the most effective way (effectiveness) 5

6 Netherlands Court of Audit Auditing the spending of public funds Independence High Council of State Mandate and tasks are part of the Constitution and the Government Accounts Act Netherlands, Europe and beyond 6

7 Mandate, scope and mission Compliance Regularity Efficiency and Effectiveness Central government Legal entities with statutory duties Final beneficiairies of European funds 7

8 Amount of pigs and cows per region in the Netherlands Concentration of cattle ranges in relation to protected natural areas (Natura 2000-gebieden) 8

9 No power, but authority Effectiveness via influence 9

10 Enforceme nt system for combating money laundering and terrorist financing Respo nsible ministries: Finance Interior & Kingdom Relations and Justice (former is responsible for the management of the organisations concerned) Justice * Prevent ion and d etection Investig ation Pro secu tion an d punish men t Supervision D etection Pro bability of investig ation Money flows Probability o f sanction Pr ocess flow Money laundering intelligence Pro bability of check MONEY LAUNDERING Supervisory authorit ies Nederlandsche Bank Financial Supervision Office Criminal Disclosure -bound authorities Intelligence on infringements of the Disclosure of Unusual Transactions Act, the Identification Act and the Sanctions Act 1977 Tax Administration Authority for the Financial Markets Disclosures of unusual transactions Criminal assets FIU Netherlands Onward notification of suspicious transactions Regional police forces Supra-regional criminal investigation teams Financial services providers TERRORIST FINANCING Sympathiser Law enforcement agencies Non -profitmaking organisations Public Prosecution Service Public prosecutors offices at district courts National Public Prosecutors Offic e National Crime Squad Supervisory authority Public Prosecution Service Intelligence on terrorist financing Fiscal Information and Investigation Service and Economic Investigation Service National Public Prosecutor s Office for Financial, Economic and Environmental Offences Intelligence on terrorist financing Terrorist acts 10are independent. The operationsgis & RS in auditing, MARS * The Public Prosecution Department and the courts of the Public Prosecution Department are directed by2008 the Board of Procurators General3. December, 2008 Courts

11 The geography of public spending 11

12 Community of Supreme Audit Institutions INTOSAI Regional bodies (EUROSAI) Need for cooperation, need for single audit Environmental auditing Auditing humanitarian assistance 12

13 Auditing disaster-related aid with GIS & RS Tsunami Initiative INTOSAI 13

14 Before and after Tsunami I Quickbird, & [Digital Globe] 14

15 Before and after Tsunami II IKONOS, & [DLR] 15

16 Disaster-related aid: a flow from source to destination 16

17 Donor and recipient want to know if the aid pledged has been provided (trust) the aid provided has been spent on the purpose it was meant for (regularity) the aid provided has been spent in the most efficient way (efficiency) the aid provided has been spent in the most effective way (effectiveness) 17

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19 Global complexity of aid sector 19

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23 Auditing housing projects 23

24 Settlements Aceh Province 24

25 Tsunami affected areas 25

26 Settlements affected by Tsunami 26

27 Red zone: no construction < 2km 27

28 Settlements and red zone 28

29 Settlements within red zone 29

30 Attributes of red zone settlements 30

Verification of tsunami reconstruction projects by object-oriented building extraction from high

31 Upper left: building polygons based on 2005 ortho-photos Lower left: building polygons based on 2007 Kompsat-2 images Above: New buildings detected by overlaying Sources: - Du Ye, 2008 Verification of tsunami reconstruction projects by object-oriented building extraction from high resolution satellite imagery. MSc thesis, ITC, Enschede, The Netherlands data from Bakosurtanal via SIM-C. 31

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36 Location: Mon Jambe Village Red area is tsunami damaged area About 250 m from coast line Page 10 of 22 36

37 Location: Suak Timah Village About 400 m from coast line 37

38 and the Netherlands? 38

39 Audit on Combating money laundering and terrorist financing High priority and many funds for combating money laundering and terrorist financing, but what about the results? We focused on prevention and detection, investigation, prosecution and punishment Objective: transparency of results and assessing possible improvements 39

40 Enforceme nt system for combating money laundering and terrorist financing Respo nsible ministries: Finance Interior & Kingdom Relations and Justice (former is responsible for the management of the organisations concerned) Justice * Prevent ion and d etection Investig ation Pro secu tion an d punish men t Supervision D etection Pro bability of investig ation Money flows Probability o f sanction Pr ocess flow Money laundering intelligence Pro bability of check MONEY LAUNDERING Supervisory authorit ies Nederlandsche Bank Financial Supervision Office Criminal Disclosure -bound authorities Intelligence on infringements of the Disclosure of Unusual Transactions Act, the Identification Act and the Sanctions Act 1977 Tax Administration Authority for the Financial Markets Disclosures of unusual transactions Criminal assets FIU Netherlands Onward notification of suspicious transactions Regional police forces Supra-regional criminal investigation teams Financial services providers TERRORIST FINANCING Sympathiser Law enforcement agencies Non -profitmaking organisations Public Prosecution Service Public prosecutors offices at district courts National Public Prosecutors Offic e National Crime Squad Supervisory authority Public Prosecution Service Intelligence on terrorist financing Fiscal Information and Investigation Service and Economic Investigation Service National Public Prosecutor s Office for Financial, Economic and Environmental Offences Intelligence on terrorist financing Terrorist acts 40are independent. The operationsgis & RS in auditing, MARS * The Public Prosecution Department and the courts of the Public Prosecution Department are directed by2008 the Board of Procurators General3. December, 2008 Courts

41 Enforceme nt system for combating money laundering and terrorist financing Respo nsible ministries: Finance Interior & Kingdom Relations and Justice (former is responsible for the management of the organisations concerned) Justice * Prevent ion and d etection Investig ation Pro secu tion an d punish men t Supervision D etection Pro bability of investig ation Money flows Probability o f sanction Pr ocess flow Money laundering intelligence Pro bability of check MONEY LAUNDERING Supervisory authorit ies Nederlandsche Bank Financial Supervision Office Criminal Disclosure -bound authorities Intelligence on infringements of the Disclosure of Unusual Transactions Act, the Identification Act and the Sanctions Act 1977 Tax Administration Authority for the Financial Markets Disclosures of unusual transactions Criminal assets FIU Netherlands Onward notification of suspicious transactions Regional police forces Supra-regional criminal investigation teams Financial services providers TERRORIST FINANCING Sympathiser Law enforcement agencies Non -profitmaking organisations Public Prosecution Service Public prosecutors offices at district courts National Public Prosecutors Offic e National Crime Squad Supervisory authority Public Prosecution Service Intelligence on terrorist financing Fiscal Information and Investigation Service and Economic Investigation Service National Public Prosecutor s Office for Financial, Economic and Environmental Offences Intelligence on terrorist financing Terrorist acts 41are independent. The operationsgis & RS in auditing, MARS * The Public Prosecution Department and the courts of the Public Prosecution Department are directed by2008 the Board of Procurators General3. December, 2008 Courts

42 Enforceme nt system for combating money laundering and terrorist financing Respo nsible ministries: Finance Interior & Kingdom Relations and Justice (former is responsible for the management of the organisations concerned) Justice * Prevent ion and d etection Investig ation Pro secu tion an d punish men t Supervision D etection Pro bability of investig ation Money flows Probability o f sanction Pr ocess flow Money laundering intelligence Pro bability of check MONEY LAUNDERING Supervisory authorit ies Nederlandsche Bank Financial Supervision Office Criminal Disclosure -bound authorities Intelligence on infringements of the Disclosure of Unusual Transactions Act, the Identification Act and the Sanctions Act 1977 Tax Administration Authority for the Financial Markets Disclosures of unusual transactions Criminal assets FIU Netherlands Onward notification of suspicious transactions Regional police forces Supra-regional criminal investigation teams Financial services providers TERRORIST FINANCING Sympathiser Law enforcement agencies Non -profitmaking organisations Public Prosecution Service Public prosecutors offices at district courts National Public Prosecutors Offic e National Crime Squad Supervisory authority Public Prosecution Service Intelligence on terrorist financing Fiscal Information and Investigation Service and Economic Investigation Service National Public Prosecutor s Office for Financial, Economic and Environmental Offences Intelligence on terrorist financing Terrorist acts 42are independent. The operationsgis & RS in auditing, MARS * The Public Prosecution Department and the courts of the Public Prosecution Department are directed by2008 the Board of Procurators General3. December, 2008 Courts

Enforceme nt system for combating money laundering and terrorist financing Respo nsible ministries: Finance Interior & Kingdom Relations and Justice (former is responsible for the management of the

43 Enforceme nt system for combating money laundering and terrorist financing Respo nsible ministries: Finance Interior & Kingdom Relations and Justice (former is responsible for the management of the organisations concerned) Justice * Prevent ion and d etection Investig ation Pro secu tion an d punish men t Supervision D etection Pro bability of investig ation Money flows Probability o f sanction Pr ocess flow Money laundering intelligence Pro bability of check MONEY LAUNDERING Supervisory authorit ies Nederlandsche Bank Financial Supervision Office Criminal Disclosure -bound authorities Intelligence on infringements of the Disclosure of Unusual Transactions Act, the Identification Act and the Sanctions Act 1977 Tax Administration Authority for the Financial Markets Disclosures of unusual transactions Criminal assets FIU Netherlands Onward notification of suspicious transactions Regional police forces Supra-regional criminal investigation teams Financial services providers TERRORIST FINANCING Sympathiser Law enforcement agencies Non -profitmaking organisations Public Prosecution Service Public prosecutors offices at district courts National Public Prosecutors Offic e National Crime Squad Supervisory authority Public Prosecution Service Intelligence on terrorist financing Fiscal Information and Investigation Service and Economic Investigation Service National Public Prosecutor s Office for Financial, Economic and Environmental Offences Intelligence on terrorist financing Terrorist acts 43are independent. The operationsgis & RS in auditing, MARS * The Public Prosecution Department and the courts of the Public Prosecution Department are directed by2008 the Board of Procurators General3. December, 2008 Courts

44 Available data Number of unusual and suspicious transactions Number of cases handed over to Public Prosecutor Service Decisions made by Public Prosecutor Service Verdict by courts => We could link available data to regions of the police force and offices of the Public Prosecutor Service 44

45 Conclusions of our audit Ministers have no insight in results, results we could identify are disappointing: Too little is still done to prevent money laundering and terrorist financing Detection and punishment rate of money laundering and terrorist financing is low Possibilities of confiscating criminal proceeds are not fully used 45

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50 Final result: interaction via web 50

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52 Future plans Knowledge Centre GIS & Audit 52

53 Knowledge Centre GIS & Audit Investing in knowledge, expertise and network Netherlands Building experience from using GIS & RS Developing methodology Establishing training programme for auditors INTOSAI Developing guidance for SAIs Supporting SAIs in using GIS & RS 53

54 GIS & strategic themes NCA Sustainable development Environment Millennium Development Goals Public Services Education Welfare Health service Security Organised crime Terrorism 54

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56 Conclusion 56

57 Why should a SAI use GIS and RS? To be able to understand and audit the business of our auditees, because they are using it more and more To be able to conduct more efficient and effective audits, because all public spending has a geographical destination To be able to manage our own activities, when they are spread around a wide area 57

58 Added value of GIS & RS in audit Risk analysis Focus and scope audit Coverage audit Sampling Benchmarking performance Visualise and communicate results 58

59 For more information Netherlands Court of Audit: Website: Tsunami-project: Website: Egbert Jongsma, Knowledge Centre GIS & Audit Phone:

60 Your ideas? 60

Member States capabilities in fighting tax crimes

Member States capabilities in fighting tax crimes Belgium Tax avoidance is understood as a legal act - unless deemed illegal by the tax authorities or, ultimately, by the courts - of using tax regimes to one's own advantage to reduce one's tax burden.